Bitcoin DeFi: Revolution in 2025
Date: 2025-01-02 Author: Henry Casey Categories: CRYPTO PAYMENTS
2024 was a landmark year for Bitcoin, which surpassed $100,000 per coin for the first time. This record has increased interest in the cryptocurrency from regulators and investors, leading to new discussions about the application of Bitcoin-based DeFi.
Build on Bitcoin (BOB) co-founder Alexey Zamyatin said that the first stage of Bitcoin DeFi development began in 2024, but new products are expected to be launched in 2025. For example, the L2 Babylon network will provide simple and secure ways to participate in Bitcoin staking. Also, Bitcoin Secured Networks (BSN) are integrating with the BOB network, strengthening the development of the technology.
According to StakingRewards, BTC liquid staking tokens have already reached $5.5 billion in total volume locked (TVL) by early 2025.
The Granite protocol, launched on the Stacks Bitcoin L2 platform, allows borrowers to receive loans in stablecoins secured by Bitcoin, avoiding counterparty risks. Rena Shah from Trust Machines noted that this project allows BTC holders to receive liquidity without selling their assets, which is especially relevant against the backdrop of crypto market volatility.
For institutional investors, Bitcoin is becoming a key asset. For example, the Maple Finance platform began using Lightning Bitcoin (LBTC) as collateral in 2025. This underscores the trust in Bitcoin's high liquidity and low risks.
Sidney Powell from Maple Finance added that Bitcoin is actively integrating into traditional financial systems due to its transparency and efficiency, opening up new opportunities for asset tokenization and innovative financial solutions.
Projects are also focused on simplifying interactions with DeFi protocols. For example, the economic platform Mezo has modernized its interface for lending against BTC. Users can receive loans in mUSD, the platform’s native stablecoin, which is already being tested on their network.
Despite the prospects, Bitcoin DeFi faces challenges. New tax rules in the US may make it more difficult to operate Bitcoin in DeFi, especially for institutional participants. However, as Powell notes, clearer regulation could, on the contrary, contribute to the growth of the sector by eliminating uncertainty for large players.
For retail investors, the key factor is the decentralization of platforms, which minimizes the risks associated with centralized services such as Celsius and FTX.
2025 promises to be a turning point for Bitcoin DeFi, opening up new opportunities for the main cryptocurrency to be used in decentralized financial ecosystems.
